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bija089 [108]
3 years ago
6

"Stock in Daenerys Industries has a beta of 0.73. The market risk premium is 10 percent, and T-bills are currently yielding 5 pe

rcent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity? Use the average from CAPM and Dividend Growth Model calculations."
Business
1 answer:
ololo11 [35]3 years ago
8 0

Answer:

CAPM = 12.30%

Dividend Growth Model=  10.32%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)

5% + (0.73 x 10%) = 12.30%

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

$35 = $1.6 x (1.055) / (r - 0.055)

r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%

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givi [52]

Answer: False

Explanation:

While a review of resumé would give some information about the job a physical interview would give a proper insight on the capabilities of the pool of applicants for the job.

So also verbal communication would help you access their strengths and properly allocate them to departments where they would be most efficient if selected.

A resumé wouldn’t give you such opportunities.

5 0
3 years ago
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Who can answer thiss?​
Elina [12.6K]

Answer:

in this order

Explanation:

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4 0
2 years ago
Nocturnal Products started as a luxury brand for designer apparel. Soon, the company expanded by launching its own line of premi
Roman55 [17]

Answer:

B) related-linked strategy

Explanation:

Related linked strategies have the purpose of creating value for the organization by exploiting and developing economies of scope within the company. This means that the company will try to save money by transferring its competencies within one product line.

In this case the product line is Nocturnal Products which has expanded to include designer apparel, perfumes, watches, bags and home furnishing. The company hopes to transfer the competencies that designer apparel has to the rest of the products.

7 0
3 years ago
Actual total factory overhead incurred $ 28,875 Standard factory overhead: Variable overhead $ 2.10 per unit produced Fixed over
klasskru [66]

Answer:

Overhead volume variance= $1000 unfavorable

Explanation:

Giving the following information:

Actual total factory overhead incurred $ 28,875 Standard factory overhead: Variable overhead $ 2.10 per unit produced Fixed overhead ($11,200/11,200 predicted units to be produced) $ 1.00 per unit Predicted units to produce 11,200 units Actual units produced 10,200 units.

Overhead volume variance= fixed overhead rate*(Normal capacity - standard capacity)

Fixed overhead rate= $1 per unit

Standard capacity= 11,200 units

Normal capacity= 10,200

Overhead volume variance= 1*(10,200 - 11,200)= $1000 unfavorable

4 0
3 years ago
One of the potential benefits to a firm of introducing new-to-the-world products or services is:.
EleoNora [17]

One of the potential benefits to a firm of introducing new-to-the-world products or services is cost savings.

<h3>What is cost savings?</h3>

Cost savings are benefit that are derived from a production process.

They are generated from actions that reduce the overall spending on production or assets.

This has a positive impact on the company's account.

A new products is likely to run on a low budget compares other products with many competitors.

Therefore, One of the potential benefits to a firm of introducing new-to-the-world products or services is cost savings.

Learn more on cost savings here,

brainly.com/question/738615

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